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William Hill Settles Dispute with Playtech

William Hill Settles Dispute with Playtech

We have received news that William Hill PLC, one of the world’s largest gambling companies, and casino software giant Playtech Limited have officially settled the dispute that has been making casino news headlines for quite some time. The case emerged over William Hill Online, a major online casino operated jointly by both parties. William Hill obtained information that Playtech was entering a special contract with Ladbrokes, a major competitor of William Hill PLC. To protect their own interests, William Hill Online filed against them in court to keep the terms of their joint venture agreement.

After seeing the financial reports from both William Hill PLC and Playtech Limited, both parties found that their mutual property, William Hill Online, was a great benefactor to both of them. The logical conclusion, they agreed, was to settle the dispute and increase each company’s flexibility. The court injunction is to be removed in the near future. Additionally, shareholders have been given an exit provision that will give them William Hill’s call option rights at the beginning of 2013 and 2015. William Hill Online is also no longer restricted to using solely Playtech games, either. Soon, they will also be offering betting services to appeal to a wider market of punters.

The second online gaming headline we’d like to address is between Playtech and Gala Coral, reported by the media in both the UK and Israel. Gala Coral, a British online gaming super giant, has petitioned Playtech to use their software. Based on what we’ve heard from inside Gala Coral, the business relationship will be strictly supplier-customer. Gala Coral will not be selling itself, partially or wholly, to Playtech Limited. The prospect of this occurring seems more likely now that a deal has been reached between William Hill PLC and Playtech, encouraging Playtech to sell licenses to other corporations.

Of course, this deal does not come without any drawbacks. The Daily Mail has reported that job cuts would occur, primarily in the IT sector. Speculators of the online gaming world seem to think that the switch to Playtech is a way to reduce the company’s autonomy. With a £2 billion debt hanging over Gala Coral’s head, it is apparent that they need to reduce some divisions when the market gets better.

If there’s anything we can learn from this, it’s that software providers and online gaming companies are no longer interested in binding contracts. The world of Internet gambling has a newly found emphasis on market freedom and keeping choices available.

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